With Vista Out, Microsoft Comes Up For Air & Vows a Renewed Fight For Search Market
With the impending mass release of Vista, the Financial Times explored Microsoft's next big challenge with chief executive Steve Ballmer.
He underlined the importance of internet search where, according to the latest US figures from Nielsen/NetRatings, Microsoft’s market share continues to fall. It has about 8 per cent of US searches compared with Google’s 51 per cent. Sketching out on paper where Microsoft would focus after Vista, the first three products in the online category were: search, search and search.
Microsoft also lags far behind Google in building up a powerful network of advertisers to feed the internet traffic generated by its search engine. Microsoft has so far failed to narrow the gap through investment in its own search technology and advertising system. Mr Ballmer did not rule out acquisitions to bolster its position. “There may be blockbuster [deals], but the number one thing for us is our own development and let’s call them technology acquisitions.”
Ballmer's most telling comment may be: “Frankly, if you are market leader, it is a little harder to break out of your pattern than if you are not the market leader.”
